• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
IJTEF 2022 Vol.13(5): 135-142 ISSN: 2010-023X
DOI: 10.18178/ijtef.2022.13.5.736

The Relationship between State Budget Expenditures and Economic Growth. The Case of Uzbekistan

Akmal Allakuliyev and Fayzullokh Sattoriy

Abstract—The purpose of our study is to identify the nature of the link between government spending and economic growth in Uzbekistan on the basis of quarterly data for the period from 2000 to 2020. The Engle-Granger Cointegration and Granger Causality tests were used to study the short and long-term causal relationships between GDP and state budget expenditures. Empirical results show that state budget expenditures have a causal effect on GDP growth, while conversely, GDP growth has a causal effect on the increase of state budget expenditures in Uzbekistan. Moreover, the result supports the Keynesian view of public expenditure and economic growth and Wagner’s law of public expenditure in Uzbekistan. Our results will provide valuable knowledge to the top managers of the nation’s economy, to refine their current policies and subsequently improve economic performance through targeted public spending policies.

Index Terms—economic growth, gross domestic product, government budget expenditures, causality.

Akmal Allakuliyev is with Yeoju Technical Institute in Tashkent, Uzbekistan (e-mail: akmal.allakuliyev1011@gmail.com).

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Cite: Akmal Allakuliyev and Fayzullokh Sattoriy, "The Relationship between State Budget Expenditures and  Economic Growth. The Case of Uzbekistan, " International Journal of Trade, Economics and Finance vol.13, no.5, pp. 135-142, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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